Soften yeast in lukewarm water.
Combine milk, shortening, sugar and salt; cool to lukewarm.
Add 1 cup of the flour; beat well.
Add softened yeast and egg; mix.
Add enough of remaining flour to make soft dough.
Turn out on lightly floured surface; knead till smooth (about 8 minutes).
Place in greased bowl, turn once to grease surface.
Cover; let rise till double (1 1/4 hours).
Let rise again till double (55 minutes).
Roll out dough to 14 x 10-inch rectangle 1/3 inch thick.
Cut in 2-inch squares.
Let rise till light (30 to 40 minutes).
Fry in deep hot fat (375°) about 4 minutes, turning once.
While warm, dip in sugar.